EXILVA, NATURAL PERFORMANCE ENHANCER IN PAINTS AND COSMETICS



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EXILVA, NATURAL PERFORMANCE ENHANCER IN PAINTS AND COSMETICS Advanced chemical solutions from sustainable and renewable raw materials

Outline Presentation of Borregaard Biorefinery consept Presentation of Exilva Whatis Exilva? Performance in coatings applications Performance in personal care applications Conclusions 1 6. 0 3. 2 0 1 6 2

Borregaard in short Norwegian innovators since 1889 Established in 1889 as the KellnerPartingtonPaper Pulp Company Ltd Today world s most advanced biorefinery Started the biorefinery concept in mid 1930s ~ 1000 employees globally 700 at the main site in Sarpsborg, Norway R&D employing 98 people, with 34 PhDs Local presence in 16 countries worldwide E.g. Japan, Singapore, China, EU, USA

High value added through full raw material utilisation

Research and development ~12% of Borregaard s revenues come from new products «BALI» is a innovation project extracting both lignin and bioethanol EXILVA: Microfibrillar cellulose and Sensefi Advanced Texture Systems «BALI»: Utilisation of other biomasses for lignin products «BALI»: Developingnew process for 2G bioethanol Continuous specialisation and improved products

Natural plant material A touch ofa wildforest

Borregaard s new innovation - Exilva Investment in commercial scale production facility Exilva has a unique set of characteristics Rheology modification, stabilisation, dispersion, barrier properties Valuable and novel applications in a variety of products Adhesives, agriculture, ceramics, coatings, composites, construction, cosmetics, de-icing, detergents, filters, home care, oilfield, personal care, pharma, water treatment New production facility (MicroFibrillated Cellulose) Initial capacity 50.000 tonnes Production expected to start in Q3-16

Exilva -The Natural Performance Enhancer Product characteristics 3D-network of cellulose microfibres suspended in water High available surface area with functional OHgroups Shear thinning and ultra-high in viscosity at rest Versatile and robust Stable in extreme environments including ph, temperature and shear VOC-free and odorless Exilva 10% paste Exilva 2% dispersion Natural and infinitely sustainable Delivered as 2% dispersion and 10% paste

Exilva: Stable viscosity at different ph- values over time 35,0 Viscosity of Exilva in water (1%) at different ph 30,0 25,0 Compl.viscosity (Pas) 20,0 15,0 10,0 ph 1 ph 5,8 ph 13 5,0 0,0 0 2 4 6 8 10 12 Time (weeks)

Exilvafor Coatings Applications

Exilva -The Natural Performance Enhancer Multifunctionalityin formulations with Exilva Improves rheology Strong thickening and shear thinning Readily activated with no pre-hydration time required Excellent anti-sag properties Improves dispersion and anti-settling of particles Prevents sedimentation and phase separation Without Exilva High water holding capacity Improves substrate wetting Anti-cracking effect Increase flexibility in handling and process Stable in extreme environments including ph 1-13 and temperatures up to 200 C With Exilva Control of light transmission/reflection Mattifying effect Reduction or replacement of shading/mattifying agent Increases formulation efficiency Multifunctional qualities reduce cost of formulation

Exilva in Exterior flat paint

Objectives To identify the potential of Exilva into Exterior paint Functionalities beyond rheology Benchmark vs. HEC No influence on other properties

ExteriorFlat Paint PVC 45% The formulation with Exilva performed better then HEC at: Stability, syneresis resistance Mud-crack resistance Scrub resistance Dirt pick up resistance Other properties (such as KU viscosity, gloss, heat stability etc.) remained unchange

Exterior Flat Paint Mudcrack resistance Reference with HEC Cracking > 14 Mils (0.36 mm) Exilva No Cracking, Pass 60 Mils (1.52 mm)

Improved stability against syneresis Reference with HEC Exilva

ExteriorFlat Paint Exilva vs. HEC

Exilva for Personal Care Applications

Exilva -The Natural Performance Enhancer Multifunctionalityin formulations with Exilva Exellent spray effect Spraying of thick formulation Non-dripping of sprayed formulation Soft focus effect Mattifying effect on skin Enhanced immediate anti-wrinkle effect Reduced skin roughness upon application Effective for atleast 5 hours Improved skin feel Non-sticky, non-oily skin feel, soft skin feel Effect in different formulations (O/W & W/O emulsions) Hair Conditioning effect Reduced wet combing force of hairmeshes Effect for both grey hair and damaged/bleached hair

Excellent Soft Focus Effect with Exilva Pilot study on 9 volunteers With Exilva Without Exilva Mean values of rating 2,5 2 1,5 1 0,5 0 Mattifying Effect Benchmark Even Skin Tone Skin Radiance Attractiveness Exilva: hasamattifyingeffecton skin lead toevenskintone lead to improved skin attractiveness performs better than benchmark Exilva Testing carried outby third party. (Specialised( Institute: : European Standards)

Formulation examples with Exilva Rheology modifier*** Stabilizer Benefits of using Exilva Improved Mattifying Conditioner skin feel effect effect Energy and Time Saving Effect on foam O/W Soft cream Face and Eye Serum W/O Body Balm Light W/O Milk Emulsifier free lotion Sun Cream SPF 30 SPF 50 Kids Cream Baby Care lotion Deo roll-on on After shave gel Loose Face Powder Lipstick Hair conditioner Foaming emulsions *** Rheology modifier: Thickener, Shear thinningadditive, possibilityto to usein spray dispenser, possibility to pump.

Overall conclusion Exilva is a sustainable, multifunctional additive which not only can replace the synthetic additives in the formulation, but also contribute added value to the end products

Thanksfor yourattention! Meetusat: Ali Moosavifar ali.moosavifar@borregaard.com Tel. +4747258189 F O O T E R T E X T 1 6. 0 3. 2 0 1 6 2 3